Mumbai: Equity benchmarks darted up on Thursday after two sessions of losses as investors piled into banking and finance stocks even as the deteriorating COVID-19 situation remained a concern.
The benchmarks were propped up by bargain-hunting in select frontline counters as well as supportive global cues, traders said.
After skidding 501 points in the opening session, the 30-share BSE Sensex pared all losses to end 374.87 points or 0.79 percent higher at 48,080.67.
Similarly, the broader NSE Nifty jumped 109.75 points or 0.77 percent to finish at 14,406.15.
ICICI Bank was the top gainer in the Sensex pack, spurting 3.60 percent, followed by HDFC, Bajaj Auto, HDFC Bank, SBI, Kotak Bank, Bajaj Finance, and Axis Bank.
On the other hand, Titan, HUL, Asian Paints, Nestle India, UltraTech Cement, and Tech Mahindra were among the laggards, shedding up to 2.75 percent.
"A persistent rise in COVID-19 cases across the country and enhanced mobility restrictions imposed by number of states are expected to remain as key drags for the market in the near term. This has certainly started posing as a threat to corporate earnings recovery.
Sector-wise, BSE bankex, finance, metal, realty and basic materials indices rose up to 2.14 percent, while consumer durables, FMCG, IT, and teck closed lower.
Broader BSE midcap and smallcap indices rose up to 0.59 percent.
Global markets were largely in the positive territory as investors monitored the vaccination progress and economic recovery in multiple countries, though the unabated rise in COVID-19 cases remained an overhang.
Meanwhile, international oil benchmark Brent crude was trading 0.51 percent lower at $64.99 per barrel.
The rupee weakened further by 6 paise to close at 74.94 against the US dollar as a persistent rise in COVID-19 cases and enhanced restrictions imposed by a number of states weighed on investor sentiment.